Refinance

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In the last several years we have seen historically low interest rates.  These interest rates have allowed many consumers to take advantage of these low interest rates and refinance their existing higher priced loans.    

People refinance their existing mortgages for many different reasons, some of the most common options include:    

• Changing from an adjustable rate mortgage to a fixed rate mortgage.     
• Lowering the interest rate cost to hold a mortgage (refinancing a higher priced loan with a lower interest rate).     
• Shortening or lengthening the term of their existing loan.     
• Taking advantage of equity available and cash out part of this equity for home renovations.    
• Debt consolidation.     

While refinancing could make a significant difference in the amount borrowers pay each month, there are costs that every borrower should consider to ensure that it makes sense and understands the breakeven point of the transaction.  If a borrower plans to live in the home past the break-even point, refinancing may make sense depending on the specific circumstances.